Egypt’s FRA regulates microinsurance to expand coverage for low-income groups
Egypt’s Financial Regulatory Authority (FRA) issued comprehensive regulations on Thursday to govern microinsurance activities, aiming to expand insurance coverage for low-income individuals, promote financial inclusion, and support small and micro enterprises.
Under Decision No. 319 of 2025, the FRA defined microinsurance and set out obligations for licensed insurers, including requirements for simplified and transparent policy documents, flexible premium collection mechanisms, and faster claims settlement.
The rules cover underwriting, marketing, digital distribution, claims processing, staff training, periodic reporting and the implementation of financial literacy programmes. They also require insurers to adopt technology-based distribution channels and simplified complaint-handling procedures, while prohibiting any charges beyond approved premiums and legally mandated fees.
Microinsurance provides coverage for low-income individuals against specified risks in exchange for proportionate premiums, with maximum coverage limits determined by FRA resolutions. Licensed insurers are permitted to offer personal insurance products, including life and accident cover, long- and short-term medical treatment, as well as property and liability insurance such as fire, transport, fishing vessels, vehicle supplements, engineering, agricultural and non-payment risk coverage.
The regulations stipulate that claims must be decided within five working days and paid within two working days of approval.
Entities authorised to market and distribute microinsurance through digital channels include licensed digital brokers, banks registered with the Central Bank of Egypt, Nasser Social Bank, Egypt Post, telecommunications companies, the Agricultural Bank of Egypt and licensed microfinance associations.
Insurers are required to submit quarterly reports to the FRA and roll out financial literacy programmes targeting eligible groups.
The decision grants existing companies a six-month grace period to comply with the new rules and cancels any conflicting provisions. The regulations take effect the day after their publication in the Official Gazette.
In December, the FRA approved Sawa as Egypt’s first specialised microinsurance company and recently raised the maximum microinsurance coverage limit to 390,000 Egyptian pounds.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser